The informal sector in Tanzania contains a large number of small-scale business entrepreneurs filling a largely service role in the economy. The subsectors of the informal sector included in this study were food preparation, beer brewing, grain milling, carpentry, metal working and auto repairs. Over the past several years, women have entered into this subsector as part of economic survival activities.
In terms of energy efficiency, the food preparation subsectors are the least efficient, while the welders and carpenters tend to be the most efficient, as the latter make use of electricity and the former utilize traditional fuels. However, the energy use ofthe informal sector is limited by capital limitations – informal cement and fertilizer factories simply do not exist. To a certain scale, energy efficiency follows capital intensity in the formal sector. The most capital intensive subsectors demonstrate the smallest gross energy requirements as they make greater use of modern fuels. The least capital intensive firms utilize the most energy in the form of traditional fuels. The energy-use patterns of the informal sector differ in the same way as the overall energy consumption patterns of-the three cities.